The Justice Department and the Federal Bureau of Investigation (FBI) are currently examining whether Calabasas, Calif.-headquartered Countrywide, the nation's largest mortgage lender, misrepresented its financial condition and loans' soundness in security filings, the New York Times reports.
The investigation is said to be in its early stages and accompanies the FBI's investigations of several other mortgage companies as part of an extensive review of business practices in the industry.
Additionally, shares of Countrywide Financial Corp. fell 14% to a 13-year low on Monday following reports of the investigation, according to a Reuters report. Despite the decline, Bank of America Corp. has recently stated it plans to move ahead with its acquisition of Countrywide.